Softlogic, Harry J bidding for Asha Central

Several parties including the Sri Lanka Insurance Corporation (SLIC) and Softlogic Group are vying for 82 percent of Asha Central Hospital, held by Euroam Management Services (Pvt) Ltd (EMSPL), widely believed to be controlled by Dr. Neville Fernando and family, industry sources said.

“The transaction will be concluded by the end of the month and the controlling interest held by EMSPL is being negotiated with several parties,” Dr. Neville Fernando, Managing Director, Asha Central told The Sunday Times FT.

He declined to say who the parties were, but industry analysts confirmed that Softlogic Group (which recently ousted business tycoon Harry Jayawardena-controlled SLIC in obtaining control of Asiri Hospitals) is in the forefront.

Asha Central Hospitals, in operation for the last 60 years at Horton Place, Colombo 7, was planning to sell its property in a bid to finance their new 13 storey hospital at the 180 perches of land in Norris Canal Road, adjoining the General Hospital which they purchased at a cost Rs.500 million. A 200 roomed hospital at a cost of Rs. 2.5 billion was coming at the new site. “SLIC has also shown some interest in the hospital after they took over Apollo Hospitals recently,” an industry analyst said.

Asha Central management had planned to sell the Horton Place land when the company called for bids from prospective buyers for the 291 perches in one block or in suitable blocks to developers of 50 and 25 perches and deliver the premises to the buyer in two years time when the new hospital was halfway operational. This did not materialise as there were very few bids.

The new hospital will be in operation in 2011.

On Thursday and Friday Asha Central’s share price shot up by 50 percent due to the speculation doing the rounds. “The share price was trading at Rs. 38 to Rs. 40 levels and hit a peak of Rs. 80 on Friday,” Vajira Premawardhana, Executive Director, LOLC Securities said.